The President of the Abuja Chamber of Commerce and Industry, Chief Emeka Obegolu, has urged the Nigerian Government to work on improving the ease of doing business with China.
He recently emphasised the need to speed up the total implementation and expansion of the Nigeria–China currency swap agreement.
Speaking recently during a courtesy visit to the Nigerian Embassy in Beijing, China, Chief Obegolu revealed that the recent difficulties Nigerian businesses face while dealing with Chinese partners is extremely concerning, especially when the transaction involves currency exchange and international payments.
Obegolu said that the Nigeria–China currency swap agreement is a thoughtful initiative that remains underutilised, presently accounting for less than 10 per cent of annual bilateral trade. According to him, the Nigerian and Chinese governments need to revisit the agreement’s operational framework to boost its efficiency, thereby guaranteeing better access to the facility for Nigerian businesses.
“We have received numerous reports of Nigerian entrepreneurs losing substantial amounts of money while trying to transfer legitimate business funds to China due to informal and risky currency exchange mechanisms. Some have become victims of outright fraud. This undermines trust, trade integrity, and the sustainability of our commercial relationship with China.
The recent renewal of the swap deal is encouraging, but more is required. We must scale up the value and duration of the swap, digitise the exchange process, and empower commercial banks to facilitate direct Naira–Yuan transactions. Doing so will reduce our dependence on the US dollar and make trade between our countries faster, safer, and more predictable for our business community,” he said.
Chief Emeka is of the opinion that the present swap agreement is nothing to write home about when compared to the ever-increasing trade volume between Nigeria and China.
He recommended the expansion of the agreement’s value and duration, as that will aid more participation of commercial banks in Yuan–Naira transactions, thereby digitising interbank exchange platforms in collaboration with Chinese banks, while offering comprehensive awareness for traders on how to use and benefit from the mechanism.
“If effectively implemented, the currency swap program will lower transaction costs, reduce reliance on third-party currencies like the U.S. Dollar, and protect Nigerian businesses from avoidable risks. It is time for deliberate policy action to institutionalise this framework as a mainstream channel for international trade,” he added.
